**Intel Shares Surge 15% After Better-Than-Expected Earnings Report**

Intel's shares experienced a significant rise, jumping 15% in extended trading on Thursday, following the chipmaker's announcement of stronger-than-anticipated revenue and a positive future outlook.

For the quarter ending on September 28, Intel posted revenue of $13.28 billion, surpassing the $13.02 billion expected by analysts. However, the company's revenue still reflected a 6% decline year-over-year. Despite this, Intel's quarterly guidance exceeded market expectations, with projected earnings per share of 12 cents on revenue ranging from $13.3 billion to $14.3 billion, compared to analysts' predictions of 8 cents per share and $13.66 billion in revenue.

The company reported a net loss of $16.99 billion or $3.88 per share for the quarter, in stark contrast to net earnings of $310 million or 7 cents per share in the corresponding quarter the previous year. This significant loss included $2.8 billion in restructuring charges and $15.9 billion in impairment charges, tied to Intel's ongoing efforts to reduce costs and restructure its business.

Intel's Client Computing Group, which focuses on PC chips, recorded revenues of $7.33 billion, reflecting a 7% decline from the previous year and falling short of the $7.39 billion consensus estimate from analysts surveyed by StreetAccount. On a brighter note, the Data Center and AI segment saw revenues grow by about 9% to $3.35 billion, surpassing the $3.17 billion forecasted by analysts.

In a strategic move during the quarter, CEO Pat Gelsinger disclosed plans to transform Intel's foundry business into an independent subsidiary. This shift aims to explore third-party funding options and counteract market share losses in Intel’s core operations. Additionally, amidst Intel's turbulent phase, Qualcomm reportedly reached out about a potential takeover in late September, according to CNBC.

Intel announced significant product launches in the quarter, including the Xeon 6 server processors and Gaudi artificial intelligence accelerators. Despite Thursday’s positive trading, Intel shares had been down about 57% in 2024 up until this recent uplift, in contrast to a 20% gain by the S&P 500 index.

Executives are scheduled to discuss the results in further detail with analysts in a conference call beginning at 5 p.m. ET.